The United States on 2 May scrapped the long-standing “de minimis” tax exemption that had allowed packages worth under $800 from China and Hong Kong to enter duty-free. Parcels are now subject to import duties that briefly reached 145% and currently stand at about 30% following a mid-May trade detente, part of President Donald Trump’s wider tariff agenda. The change is denting growth at Chinese fast-fashion apps that relied on the loophole. Market-intelligence firm Sensor Tower estimates Temu’s U.S. monthly active users dropped 51% to 40.2 million between March and June, while Shein’s fell 12% to 41.4 million. Both retailers are accelerating efforts to source goods locally or shift marketing to Europe, where Temu’s user base grew more than 70% in key markets last month. Supply-chain data point to a broader slowdown. The International Air Transport Association said Asia-to-North America air cargo traffic fell 10.7% year on year in May, and consultancy Aevean calculated that low-value e-commerce shipments from China to the United States plunged 43% from April. Airlines have cut direct freighter capacity on the trans-Pacific route by 11% since March, while container traffic from China has slid roughly a quarter since February. Whether volumes rebound now that duties have eased remains unclear. Washington and Beijing continue to negotiate ahead of 9 July, when the United States plans to reinstate a wider set of tariffs if no broader trade deal is reached.